Nvidia has been supplying Tesla with the graphic processing units for powering its Autopilot and future self-driving system, but the electric carmaker has reportedly started taking steps to decrease its dependence on the chipmaker.

Tesla is reportedly working on its own chip to power its autonomous/self-driving vehicles. The move would slash Nvidia's role in Tesla's autonomous car ambitions. It would also bring more of the ambitious project in-house.

To develop the chip, Tesla has partnered with semiconductor company AMD. Last year, Tesla pushed back the timeline for its autonomous car demo to early 2017.

In early June, Elon Musk said, “It's definitely been a tough slog transitioning from the Mobileye vision chip to Tesla’s internal vision system, but I think we’re almost there in terms of exceeding the ability of the hardware one cars.”

Meanwhile, AMD and Nvidia declined to return requests for a comment on the development.

Stock in AMD jumped on the news, while Nvidia was down in the after-hours trading.